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IP

International PaperNYSE:IP Stock Report

Market Cap

US$18.0b

7D

-2.3%

1Y

-5.0%

Updated

03 Dec, 2021

Data

Company Financials +
IP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health4/6
Dividends6/6

IP Stock Overview

International Paper Company operates as a paper and packaging company primarily in United States, the Middle East, Europe, Africa, Pacific Rim, Asia, and rest of the Americas.

International Paper Competitors

Avery Dennison

NYSE:AVY

US$17.0b

Packaging Corporation of America

NYSE:PKG

US$12.6b

WestRock

NYSE:WRK

US$11.9b

Sealed Air

NYSE:SEE

US$9.1b

Price History & Performance

Summary of all time highs, changes and price drops for International Paper
Historical stock prices
Current Share PriceUS$46.45
52 Week HighUS$65.27
52 Week LowUS$45.07
Beta0.96
1 Month Change-6.93%
3 Month Change-22.48%
1 Year Change-4.95%
3 Year Change3.78%
5 Year Change-13.71%
Change since IPO62.27%

Recent News & Updates

Nov 04

International Paper: Now An Upside - 'BUY'

I wrote about International Paper about two months back. The company, at that time, was unfavorable in terms of valuation. My stance was "HOLD". Since that time, the stock has declined nearly 14% in a market where the S&P 500 has gained 6.5%. My thesis, therefore, as it stood, was correct. Under current circumstances, things have changed. I would consider IP a "BUY" here, and one with a respectable conservative upside.

Sep 30
Is International Paper (NYSE:IP) A Risky Investment?

Is International Paper (NYSE:IP) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

IPUS PackagingUS Market
7D-2.3%-2.5%-2.7%
1Y-5.0%6.7%16.6%

Return vs Industry: IP underperformed the US Packaging industry which returned 9.1% over the past year.

Return vs Market: IP underperformed the US Market which returned 19.4% over the past year.

Price Volatility

Is IP's price volatile compared to industry and market?
IP volatility
IP Average Weekly Movement3.6%
Packaging Industry Average Movement4.0%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: IP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189849,300Mark Suttonhttps://www.internationalpaper.com

International Paper Company operates as a paper and packaging company primarily in United States, the Middle East, Europe, Africa, Pacific Rim, Asia, and rest of the Americas. It operates through three segments: Industrial Packaging, Global Cellulose Fibers, and Printing Papers. The Industrial Packaging segment manufactures containerboards, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft.

International Paper Fundamentals Summary

How do International Paper's earnings and revenue compare to its market cap?
IP fundamental statistics
Market CapUS$17.99b
Earnings (TTM)US$1.80b
Revenue (TTM)US$21.93b

10.0x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IP income statement (TTM)
RevenueUS$21.93b
Cost of RevenueUS$15.34b
Gross ProfitUS$6.59b
ExpensesUS$4.79b
EarningsUS$1.80b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)4.64
Gross Margin30.04%
Net Profit Margin8.20%
Debt/Equity Ratio87.2%

How did IP perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

45%

Payout Ratio

Valuation

Is International Paper undervalued compared to its fair value and its price relative to the market?

29.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IP ($46.45) is trading below our estimate of fair value ($65.59)

Significantly Below Fair Value: IP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IP is good value based on its PE Ratio (10x) compared to the US Packaging industry average (22x).

PE vs Market: IP is good value based on its PE Ratio (10x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: IP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IP is good value based on its PB Ratio (1.9x) compared to the US Packaging industry average (3.2x).


Future Growth

How is International Paper forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IP's earnings are forecast to decline over the next 3 years (-4.8% per year).

Earnings vs Market: IP's earnings are forecast to decline over the next 3 years (-4.8% per year).

High Growth Earnings: IP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IP's revenue is expected to decline over the next 3 years (-1.5% per year).

High Growth Revenue: IP's revenue is forecast to decline over the next 3 years (-1.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IP's Return on Equity is forecast to be low in 3 years time (19.3%).


Past Performance

How has International Paper performed over the past 5 years?

-3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IP has high quality earnings.

Growing Profit Margin: IP's current net profit margins (8.2%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: IP's earnings have declined by 3.7% per year over the past 5 years.

Accelerating Growth: IP's earnings growth over the past year (264%) exceeds its 5-year average (-3.7% per year).

Earnings vs Industry: IP earnings growth over the past year (264%) exceeded the Packaging industry 48.8%.


Return on Equity

High ROE: IP's Return on Equity (18.7%) is considered low.


Financial Health

How is International Paper's financial position?


Financial Position Analysis

Short Term Liabilities: IP's short term assets ($9.9B) exceed its short term liabilities ($4.7B).

Long Term Liabilities: IP's short term assets ($9.9B) do not cover its long term liabilities ($15.2B).


Debt to Equity History and Analysis

Debt Level: IP's net debt to equity ratio (65.1%) is considered high.

Reducing Debt: IP's debt to equity ratio has reduced from 257.8% to 87.2% over the past 5 years.

Debt Coverage: IP's debt is well covered by operating cash flow (32.3%).

Interest Coverage: IP's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Dividend

What is International Paper current dividend yield, its reliability and sustainability?

4.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IP's dividend (4.41%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: IP's dividend (4.41%) is in the top 25% of dividend payers in the US market (3.61%)


Stability and Growth of Payments

Stable Dividend: IP's dividends per share have been stable in the past 10 years.

Growing Dividend: IP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.6%), IP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IP's dividends in 3 years are forecast to be well covered by earnings (39.6% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Materials industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Mark Sutton (59 yo)

7.08yrs

Tenure

US$18,320,199

Compensation

Mr. Mark Stephan Sutton serves as Chief Executive Officer at International Paper Company, International Paper do Brasil Ltda., and International Paper Italia S.r.l. since November 1, 2014 and Chairman sinc...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD18.32M) is above average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: IP's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: IP's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

International Paper Company's employee growth, exchange listings and data sources


Key Information

  • Name: International Paper Company
  • Ticker: IP
  • Exchange: NYSE
  • Founded: 1898
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: US$17.988b
  • Shares outstanding: 387.26m
  • Website: https://www.internationalpaper.com

Number of Employees


Location

  • International Paper Company
  • 6400 Poplar Avenue
  • Memphis
  • Tennessee
  • 38197
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:52
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.